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Module #3 – Strategic Planning for Local Development

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Steps in Strategic Planning for Local Development

Beginning the Process Community Assessment Leadership Engagement Setting Goals and Measurable Outcomes Strategic Action Planning Writing and Communicating the Strategic Plan

Draft Implementing the Plan

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Or in other words…

Where are we now? Where do we want to be? How do we get there? How do we know if we got there?

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Strategic Planning = Targeting

Targeting public investments in areas that will improve competitive position

Targeting development efforts toward specific programs or activities likely to bring desired results

Targeting the time, talent, and money of local government and development organizations to get the “biggest bang for the buck.”

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Strategic Planning Benefits

Takes a proactive rather than a reactive approach Efficiently reallocates resources to meet changing

conditions Creates a dialogue throughout the community Educates stakeholders about the local economy and

the importance of certain programs

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Strategic Planning

Community Development Focused on improving

quality of life Focused on residents Concerned with housing,

social welfare, education, medical services, etc.

Economic Development Focused on improving

standard of living Focused on business

activity Concerned with business

climate, work force, transportation, etc.

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Strategic Planning Process

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Step 1: Beginning the Process

Gather individuals to guide the strategic planning process

Identify stakeholders and define their participation

Select an organizational arrangement for the strategic planning process

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Successful Strategic Planning

A “champion” or unified group of champions is critical

A “steering committee” keeps everything on track

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Steering Committee

A unified, committed group representative of the community who will take on:

Fund-raising Designing the planning process Establishing policies and procedures Authorizing expenditures Monitoring and

evaluating progress

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Role of Local Leadership in Strategic Planning

Visioning Identifying and prioritizing key

development issues Providing continuity Giving input on the action agenda Fund-raising Serving as spokespersons and

champions

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Sources of Leadership & Strategic Planning

Financial Local businesses Government Manufacturing Agricultural Property owners Religious

Civic

Health care and social services

Youth

Senior citizens

Education

Electric and/or gas utility

Telecommunications

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Role of Citizens in Strategic Planning Providing input into problems and issues that impact

people and communities Learning more about how economic development

“happens” and what needs to be supported and funded

Voting for political candidates and referendums that enhance the strategic planning effort

Getting involved in volunteer efforts that build local capacity for an expanding economy

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Step 2: Community Assessment

What is going on in our economy?

What do we consider our strengths and weaknesses?

Do we have the organizational structure we need?

Will the community support a strategic planning process?

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Assessment Surveys

Leadership survey

Citizen survey

Business survey

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Community Assessments

Information Inventory

Economic Base Analysis

S.W.O.T. Analysis

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Economic Base Analysis

Demographic trends Income trends Labor force trends Employment base Retail trends Future economic possibilities

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S.W.O.T. Analysis

Strengths Weaknesses Opportunities – potential target industries Threats:

– Globalization– Knowledge-based economy– Economic slowdown– Transformation of manufacturing & distribution– Skilled labor shortages– Etc.

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Step 3: Leadership Engagement

Visioning

Setting Priorities

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Have a Leadership Workshop

Introductions Ground rules Education about major trends Results of surveys and

assessments Visioning process Identification of priority issues Review of the “path forward”

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Vision

“There is no more powerful engine driving an organization (or community) toward excellence and long-range success than an attractive, worthwhile, and achievable vision of the future, widely shared.”

- Burt Nanus, Visionary Leadership

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Vision

Develops as an ideal and unique view of the future

Comes from leaders’ knowledge and experience; inspires others with a sense of purpose

Gives direction to the actions of the community and its organizations

Provides a way to measure progress

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An Effective Vision

Widely shared Clearly articulated Strongly supported Challenging but attainable Highly desirable; a substantial

improvement on the present Concise and memorable

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Vision vs. Priorities

Vision – what do we want to become?

Priorities – what must we take care of now to get there?

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How do we get to where we want to be?

Set KEY priorities (strategic planning is focused, not comprehensive)

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Key Development Issues

Problems Constraints Needs Concerns Attitudes Unrealized opportunities

and potential

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Prioritizing

On what issues should the strategic plan be focused to achieve our vision?

Given our resources and economic realities, what can we and should we attempt to accomplish?

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Local Development Opportunities

Balancing: Leadership concerns Business investment concerns Community concerns Local government concerns

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Priority Identification

Use: Past studies Assessments Employer opinions A task force of key leaders Focus groups Community surveys A workshop/retreat

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Local Development Priorities

Provide information to leaders so they can develop a realistic perspective

Structure a workshop environment to effectively identify priorities for the community

Rank priorities to determine relative importance of each

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Step 4: Setting Goals and Measurable Outcomes

Setting goals Measuring outcomes

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From Issues to Goals

Issues and problems tend to be negative in nature; they are questions looking for answers

Goals tend to be positive statements about the future; they reflect the achievement of a desirable condition or status

Start the action development process with problems and their causes; convert issues into goals for the written strategic plan

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Goals

Stated vision that is more specific than the broader vision

Generally not measured (this is the purpose of outcomes)

Used as a frame of reference in decision-making

Based on economic reality

Stated clearly, concisely, and explicitly

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Goal Example

Issue: The community has no available industrial sites for new business and industry.

Goal: The community has adequate sites in an attractive business park to attract new employers.

Action: The county’s Industrial Development Authority will acquire 100 acres suitable for a business/industrial park.

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Goal & Outcome Example

Goal: The organization has enough money to implement its action plan.

Outcome: Within the next 12 months, the executive director and Board will raise $1 million in public and private sector monies for the organization’s funding.

Strategic Action: The Board will appoint a committee to design and implement a one-year fund-raising campaign using local volunteers.

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Outcome-Based Performance

Outcomes -- the results desired

Strategic Planning -- how to achieve the outcomes

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Step 5: Strategic Action Planning

Develop leadership consensus on the top development issues

Research those issues and decide what actions to take

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Developing Strategic Actions

Frequently, local leaders tend to stick with familiar ideas rather than coming up with new approaches

Think out-of-the-box; new ideas can come from focused facilitation, research, and outside expertise

Choose issues based on goals, available resources, potential impact on the economy, and leaders’ commitment.

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Strategic Actions

Avoid action words that lack accountability, such as: Promote Encourage Focus on Pursue Enhance Review Continue to use Study Collaborate with

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Evaluation of Actions

Who implements it? How much will it cost? What resources and staffing will be

required? What is the timeframe? What will be the benefit? How will we measure our progress?

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Step 6: Writing and Communicating the Strategic Plan Draft

Community assessment (Who are we?)

Vision statement (Who do we want to become?)

Goals (priority issues) (Where do we want to go?)

Strategies (How do we get there?)

Evaluation and adjustment (“what gets measured, gets done”)

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Goals and Actions

The format for the goals and actions should be:

Goal 1:Measurable Outcome:

Strategic Action 1:Responsible organization:Estimated cost: $Source of funding:Timetable:Benefit to the community:Performance measure:

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Step 7: Implementing the Plan

Each strategic action requires a clearly identified organization to take on the implementation

Each organization in the plan needs to buy in to its role in the implementation

An overview group is helpful to monitor andcoordinate implementation among organizations

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Implementing the Strategic Plan

STRATEGIC PLAN Long-term (3- 5 years) Goal-oriented General strategies Improvement of the

competitive position

WORK PLAN One year Results-oriented Specific strategic

actions Improvement of the

existing situation

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Adjusting the Plan

Reassessing priorities

Reallocating resources

Changing procedures

Modifying the basic program or plan

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The Strategic Plan

The strategic plan should never be “written in stone!”

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Successful Strategic Planning

Successful completion of process– Moving efficiently through all steps– Timing -- 6 to 9 months– Reasonable costs– Local participation maximized

Meaningful involvement of leaders/stakeholders Recruitment of leaders to champion the process Careful selection of Steering Committee Use of local coordinator to keep process moving Judicious use of outside facilitators Periodic review of progress and appropriate

adjustment

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Remember…

“It is the successful transformation of the community that is ultimately important; not the successful implementation of the plan.”

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